Question

Downsizing an organization typically has all of the following effects on the organization EXCEPT

a. demoralization of surviving employees.
b. short-term reduction in labor costs.
c. revenue generation.
d. extra costs in the form of severance pay and outplacement.

Answer 1

Downsizing an organization typically has all of the following effects on the organization EXCEPT revenue generation.

Step-by-step explanation:

Downsizing an organization typically has all of the following effects on the organization EXCEPT c. revenue generation. Downsizing is a process of reducing the size of an organization, usually by laying off employees. While it can lead to short-term reduction in labor costs and result in demoralization of surviving employees, it does not generate revenue for the organization. Instead, downsizing is often implemented as a cost-cutting measure during difficult times.